NRJ GROUP (NRG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:NRG - FR0000121691 - Common Stock
7.58 EUR
-0.04 (-0.52%)
NRG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Media industry. NRG gets an excellent profitability rating and is at the same time showing great financial health properties. NRG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year NRG was profitable.
- In the past year NRG had a positive cash flow from operations.
- In the past 5 years NRG has always been profitable.
- NRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NRG's Return On Assets of 4.53% is fine compared to the rest of the industry. NRG outperforms 79.10% of its industry peers.
- NRG has a Return On Equity (5.83%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 4.06%, NRG perfoms like the industry average, outperforming 47.76% of the companies in the same industry.
- NRG had an Average Return On Invested Capital over the past 3 years of 4.38%. This is below the industry average of 7.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 5.83% | ||
| ROIC | 4.06% |
ROA(3y)4.46%
ROA(5y)4.24%
ROE(3y)5.78%
ROE(5y)5.55%
ROIC(3y)4.38%
ROIC(5y)3.42%
1.3 Margins
- NRG's Profit Margin of 10.14% is amongst the best of the industry. NRG outperforms 86.57% of its industry peers.
- In the last couple of years the Profit Margin of NRG has grown nicely.
- With a decent Operating Margin value of 10.50%, NRG is doing good in the industry, outperforming 68.66% of the companies in the same industry.
- In the last couple of years the Operating Margin of NRG has grown nicely.
- Looking at the Gross Margin, with a value of 86.49%, NRG belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
- In the last couple of years the Gross Margin of NRG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.5% | ||
| PM (TTM) | 10.14% | ||
| GM | 86.49% |
OM growth 3Y3.36%
OM growth 5Y8.52%
PM growth 3Y11.64%
PM growth 5Y13.65%
GM growth 3Y2.19%
GM growth 5Y8.65%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NRG is destroying value.
- Compared to 1 year ago, NRG has about the same amount of shares outstanding.
- The number of shares outstanding for NRG remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, NRG has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.83 indicates that NRG is not in any danger for bankruptcy at the moment.
- NRG has a better Altman-Z score (3.83) than 95.52% of its industry peers.
- The Debt to FCF ratio of NRG is 0.88, which is an excellent value as it means it would take NRG, only 0.88 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.88, NRG belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
- NRG has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.04, NRG belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.52
WACC7.81%
2.3 Liquidity
- NRG has a Current Ratio of 3.44. This indicates that NRG is financially healthy and has no problem in meeting its short term obligations.
- NRG has a Current ratio of 3.44. This is amongst the best in the industry. NRG outperforms 98.51% of its industry peers.
- NRG has a Quick Ratio of 3.38. This indicates that NRG is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 3.38, NRG belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
- NRG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.61%.
- The Earnings Per Share has been growing by 14.07% on average over the past years. This is quite good.
- NRG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.14%.
- NRG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
EPS 1Y (TTM)-6.61%
EPS 3Y14.98%
EPS 5Y14.07%
EPS Q2Q%-25.86%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y3.01%
Revenue growth 5Y0.36%
Sales Q2Q%-1.05%
3.2 Future
- NRG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.07% yearly.
- The Revenue is expected to decrease by -3.92% on average over the next years.
EPS Next Y-18.92%
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
EPS Next 5YN/A
Revenue Next Year-18.05%
Revenue Next 2Y-9.13%
Revenue Next 3Y-5.71%
Revenue Next 5Y-3.92%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- NRG is valuated correctly with a Price/Earnings ratio of 14.04.
- Compared to the rest of the industry, the Price/Earnings ratio of NRG is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (27.25), we can say NRG is valued slightly cheaper.
- The Price/Forward Earnings ratio is 16.68, which indicates a correct valuation of NRG.
- NRG's Price/Forward Earnings ratio is in line with the industry average.
- NRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 16.68 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NRG indicates a rather cheap valuation: NRG is cheaper than 88.06% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NRG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 3.68 |
4.3 Compensation for Growth
- The decent profitability rating of NRG may justify a higher PE ratio.
- A cheap valuation may be justified as NRG's earnings are expected to decrease with -4.07% in the coming years.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.87%, NRG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.08, NRG pays a bit more dividend than its industry peers.
- NRG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
- On average, the dividend of NRG grows each year by 14.87%, which is quite nice.
Dividend Growth(5Y)14.87%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- NRG pays out 62.70% of its income as dividend. This is not a sustainable payout ratio.
- NRG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP62.7%
EPS Next 2Y-8.96%
EPS Next 3Y-4.07%
NRJ GROUP / NRG.PA FAQ
What is the ChartMill fundamental rating of NRJ GROUP (NRG.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NRG.PA.
Can you provide the valuation status for NRJ GROUP?
ChartMill assigns a valuation rating of 4 / 10 to NRJ GROUP (NRG.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for NRJ GROUP?
NRJ GROUP (NRG.PA) has a profitability rating of 7 / 10.
What is the financial health of NRJ GROUP (NRG.PA) stock?
The financial health rating of NRJ GROUP (NRG.PA) is 8 / 10.
How sustainable is the dividend of NRJ GROUP (NRG.PA) stock?
The dividend rating of NRJ GROUP (NRG.PA) is 5 / 10 and the dividend payout ratio is 62.7%.